Q22 Explain briefly the matters to be considered and the steps that may be taken by a Finance and Accounting professional when he is required to resolve an ethical conflict in the application of fundamental principles.
Conflict resolution: While evaluating compliance with the fundamental principles, finance and accounting professional may be required to resolve the conflict on the application of fundamental principles.
Solve by own: The following is need to be considered, either individually or together with others, during a conflict resolution process:
- Relevant facts,
- Ethical issue involved,
- Fundamental principles related to the matter in question,
- Established internal proceedings and
- Alternative course of action.
Having considered these issues, the professionals should determined the appropriate course of action that is consistent with the fundamental principles identified. The professionals should weigh the consequences of each possible course of action.
Consult the BOD (board of directors): If the matter remains unresolved, the professionals should consult other appropriate persons within the firm or employing organization for help in obtaining resolution. During times where a matter involves a conflict with or within an organization, finance and accounting professionals should also consider consulting those charged with governance of organization, such as the Board of Directors.
Advice from experts: If a significant conflict cannot be resolved, a professional may also obtain professional advice from the relevant professional body or legal advisors and thereby obtain guidance on ethical issues without breaching confidentiality.
Finally quit: If after adopting all strategies, the ethical conflict still remains unresolved, a professional should try to disassociate from the matter causing the conflict or even from the organization, if needed to be.